Marketing is Availability

Last weekend I had to make a couple of tasks on my wife’s car. The only available day for me to look after my private tasks is on Saturday. Last Friday afternoon (probably a bit too late) something crossed my mind: as I had to replace 2 tyres on my wife’s car, I should have called a Tyres Centre and at least check if they’d had the right tyres available. I started looking for the closest KwikFit (the Brand that rang me more bells). On the first one I called (less than 1 mile away from my place) someone told me that the required tyres were not available. Only on following Monday they could have them available at the Garage. On the second trial on the same Brand (3 miles away from my home) someone told me exactly the same. On the 3rd KwikFit Centre I tried (6 miles away from my home) someone told me that they had a couple of tyres of the requested dimension but only for the Budget brand. Well…this could work but as it was for my wife’s car I thought that a budget tyre wouldn’t be good enough. Then I gave up looking into Kwikfit and gave a call to Halfords. The closest Halfords Centre was located at 4 miles from my home and a not very nice place to take any transport back while the tyres were being changed. However the call was totally different: first they asked about the car reg instead of the tyres code or dimensions or reference or whatever those numbers mean. It was much easier for me. Then, the gent on the other side of the line, asked me about the price range which I informed immediately. I was told that that the tyres I was after were available on their central warehouse. In silent I thought: “it will take 2 or 3 working days to have them available at the Car Centre”. Then I asked if they could make this service for me on the very next day, Saturday. Surprisingly they confirmed and asked me about the best time for me to do it. And in less than 2 minutes everything was arranged and on Saturday I was there to change my tyres for the price and time agreed.

When I left the Car Centre I had to buy one wiper blade (on the Garage they don’t have stocks for the spare parts, only do Service). As I had a positive experience in Halfords I went to the closest Halfords’ shop. When I arrived I went to the respective section and figured out that the reference I was after was out of stock. I asked the lady on the cashier and again she asked me for the Car Reg, which I told. She informed that the wiper blades I was after were out of stock (I already knew it but OK) and if I would like she could order that one for me and pay upfront. It would be available in 5 to 7 working days on the same store. No way!!! I didn’t want to go back to any store later. I only have the Saturdays to deal with those subjects and I had to sort them out ASAP. I left the Shop and, seated on the car outside, I got into Euro Parts’ website and ordered the part I was looking for. In less than 2 minutes I ordered it. It cost me less than it was labelled on Halfords store and Euro Parts was sending it to me by post either in 2 working days for free or on the very next day for £3.00!!! Great!!! I headed home then. On the way back decided to wash my wife’s car (more points for me…). Stopped on a Shell gas station and was told that the Automated Car Wash had closed 20 min earlier. No worries. Next station was only a couple of miles away and still on my way. When I stopped on the next Shell Station the person on the cashier succeeded in selling me a pack of 4 washes for less than 50% of the normal price. Great deal for Shell (loyalty) and good deal for me (I got the car washed and a better reputation near my wife by having bought a great deal for her).

And this was it. Just a small anecdote to prove that if in the past Marketing was Location and Branding, these days we can see that Marketing is more about SERVICE and AVAILABILITY!!! Even when we have a good experience with one Brand (in this case Halfords or Shell), the same Brand can be disappointing us one minute later by not having available what we want, when we want.

I remember one quote I heard from someone working in Coca-Cola many years ago which was something like this:” A vending machine of Coca-Cola can sell a lot even in the desert. The problem is finding people to install it there”.

Availability is the challenge for the great BRANDS!!!!

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Supervisor, Coordinator or Senior: No thanks!

During my professional life working for Multinationals I’ve seen many job titles that should be ditched and never used again. Simply because these job titles don’t create any accountability or management responsibility on the employees but, instead, show only a kind of ranking or classification and can create frustrated and demotivated people in the long run. I can point out 3 examples that, in many cases (there’s always some exceptions), are an attempt of keeping one person motivated (or semi), without paying properly for the Management position but demanding more from him/her, without giving him/her the full responsibility over the teams decisions and (positive or negative) results. Let’s analyse the 3 situations:

1. Supervisor

What’s a supervisor? A supervisor, as the name says, should be someone that is able to have an overview of the process and give instructions/guidelines to someone on how to act. Ultimately I see a supervisor as the one that is “whistleblowing” to the one above his/her when someone is not following the guidelines. I can only remember my old times in the primary school when the teacher had to leave the class and used to ask to one pupil (usually a very good student)to supervise all the others. This pupil wasn’t a teacher but during those few minutes felt like such. However he/she was still a pupil like me or any other. Another situation was during the exams periods where there were not enough teachers to control the exam rooms and an employee of the school was “invited” to supervise the exam. This employee wasn’t a teacher but during that Exam felt like such. When the Exam ended, this person was stepping down for the temporary teacher’s dream and was back to his admin tasks.

And now the question is: In one Company, what’s the need of having someone like this? What’s the need of someone that is not accountable for a Department or Team but, instead, is responsible to have an overview and give guidelines? Who’s in charge then? The Director? The President? Who should be telling clearly what is required from the others and follow it up properly? A Supervisor shouldn’t have among his/her tasks any of these ones. Nevertheless, it looks like the Companies are demanding from the Supervisor the same responsibilities that from a Manager, without giving him/her publicly the title of Manager.

2. Coordinator

This solution is also usually bad and not helping to have an effective and professional Management of a Company and the people involved. As I did above regarding the position of “Supervisor” let’s try to analyse what a Coordinator is: A coordinator is someone who coordinates (like Monsieur de La Palice would say). But this is right. And coordinate means, according to the Oxford Dictionary, “bring the different elements of (a complex activity or organization) into a harmonious or efficient relationship”. This is great and all the Organizations should work in harmonious relationship. Fantastic statement!!! But is this a job?! Is “Coordination” a full job in an usual Commercial Company? It is not. It can be a temporary task on a task force or on a Project but a Coordinator is not (or shouldn’t be) accountable for any result other than putting the elements together and make them work. If something is wrong in the strategy or anything not planned happens, there must be some Manager around to be called to the top management to answer the right questions and find solutions that can satisfy the hierarchy.

This is what a Coordinator should be.

However, and like in the previous situation, many Companies are not using this title properly and using it in hybrid situations where the Management doesn’t want to promote properly a certain employee for different reasons that we’ll analyse later on.

3. Senior

In modern English the word “Senior” means only “Older” than other or an “Experienced” person. Etymologically the word “Senior” has its origin in the Latin where it means the superlative of “senex” which means old. Telling it in another way, “Senior” means a rank more than a responsibility, job or task.

In this case, the question is again: What’s the need for a Company to have and show rankings of age or seniority (in current English) rather than levels of responsibility and/or accountability?!

Behind the attribution of all the above “titles”, assuming only the cases they are wrongly given, there are a few reasons that are worthwhile to mention and try to understand. The reason the Managers are giving employees such titles can be one of the following (or more than one combined):

a) “Egos” Management.

This is probably the most common cause of the wrong or misleading nominations. In all organizations there are “egos” to manage and people to please. Some of them are considered really key for the Company for any certain reason but, most of all, they are considered indispensable or needed is due to their knowledge or expertise in certain areas of the Business. These people know that they are key for the Manager keep presenting positive results and, with the time, they create a kind of psychological pedestal for themselves from where is difficult to step down and keep being humble and doing their job properly just for the sake of doing their job properly.

Many Managers fall on this trap just to please their “key” people (not very key indeed but we leave this for another post) and to gain a bit of peace on the “lock room” as said in the soccer jargon. This peace is however short termed by the same “Ego” of the person as all of the three titles as such are not giving the employees any power or accountability. Therefore the frustration of the employee and the troubles for the Manager is unavoidable in the long run.

b) Keep OPEX low.

The Operating Expenses (OPEX) are one of the most important KPI to keep under control in the Modern Organizations. More than under control, Companies need to have some flexibility on OPEX as they need to be quickly bendable in case the sales start dropping. With the current labour laws in most of the countries the flexibility in Personnel OPEX are low. This is taking many Managers to keep a very tight policy of promotions and nominations to new and higher positions within the Organization.

However it’s not possible keep everyone on the same level as the boat need at least rowers, team leaders and a captain. This means that sometimes the Managers need to “create” some positions to keep the organization running but without getting into bigger wages and, at the same time, keeping the hierarchy pretty flat.

This could work well in the short term again but, as time goes by, the employee will feel that he/she is doing tasks and taking risks and decisions that should be taken by a Manager, paid as a Manager. We can easily envisage a situation of frustration and a demotivated employee once again.

c) Attempt of motivation.

Linked to the first point (“Egos” Management) giving such titles as an attempt of Motivation is clearly a bad decision. When a Manager needs to motivate people and is not able to do it in any other way (including salary increase) creates such unevenness positions to try and do it. However this is wrong because at the end of the day the employee will feel that this was a smoke a mirror solution and that he/she is still on the same professional situation than in the past but with a “fancier” title. The others will detect it immediately but the person in question will only realize it later. And then the frustration and lack of motivation will take over again.

d) Doubts about the Management skills of an employee.

When a Manager is not totally convinced of the skills of one employee and, for any reason, doesn’t want to hire another person to take the lead of the team, usually takes the decision of “promoting” this employee to one of the mentioned titles.

As we can understand this is not working well either. And the reason is twofold: on one hand the person that is now “promoted” will understand that, having a vacant position to fill, is not being invited to occupy the place. On the other hand the other piers will easily understand that this person is not the “old” Manager they used to have and will not respect the new “leader” as such.

In this case all of the people will end up frustrated and the performance of the team will become obviously poorer and poorer.

In summary, all of the above titles are usually (again, there are many and good exceptions) not leading to any good long term business solutions. Managers that are afraid to take clear decisions on the people’s positions and create such different levels within an Organization are bringing to the Company a time bomb that will end up exploding and creating more negative than positive effects on their people. And even if this bomb will never explode because the people fear to lose their job and remain quiet on the position, these decisions are not showing a huge respect for the employee and, at the end of the day, are not providing the team with a motivated person to help the whole group reaching the expected results.

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There’s only one Boss: The Customer.

Despite everybody knows that Marketing is essentially the way of understanding the Consumer and workout all the process within the Company to create the appropriate offer to be supplied to this Customer, very often traditional Organizations take the risk of not acting as such. On top of this misconduct, Companies tend to forget that competitors are alive and ready to gain some share of consumers’ pocket. With these 2 typical business risky behaviours, Companies put themselves in danger and exposed to the risks of the free market nasty effects. 

Let’s analyse 3 well known situations of (big) Companies that, for the sake of maximizing profits without paying attention to the Consumers’ needs, neglected the effects of the competitors attacks and forgot that the Consumers have always the last word.

1. Hotmail vs. Gmail

When Hotmail was launched in 1996 by Sabeer Bhatia and Jack Smith, it looked (and it was) a great idea and superb value offer: a free webmail service, accessible from anywhere in the world where each user had the “right” of having 2MB of storage for his/her personal use (a “normal” photo taken with a mobile phone these days can weight between 1MB and 3MB). At the time this was a very innovative product as most part of the email services were supplied by the internet suppliers when the subscribers signed up and the emails were statically staying at the users Inboxes. It was so great that the giant Microsoft bought it by (allegedly) $400m in December 1997. So far so good. The innovation at the service of the consumers was paying off and, 2 years later, Hotmail had already 30m active users. 

When Google launched Gmail in 2004, the free (advertised supported) email service, the Beta version was available by invitation only. However Google had already in mind (I assume) to revolutionize the landscape of the webmail by offering a huge storage where the user could forget the old days of deleting emails in the Inbox after the annoying message “Your Inbox is reaching the limit. Please delete some emails.” popped up.

Today Gmail has 15GB for free for its users and, despite the price to pay is to be hit with advertising and discrete banners, more than 400m users chose to have an account on Gmail. Does any of you still have an old Hotmail Account (Outlook.com it’s something different)?

2. British Airways vs EasyJet

Although we know that BA is hold by IAG, a Private Economic Group listed on the London Stock Exchange and FTSE 100 constituent since 2011, we also know that BA has been treated and perceived throughout the years as the “National Company” of UK. With this “status” we could expect that BA would be the unquestionable market leader in the English Airlines Market. Moreover BA has a story (as such) of more than 40 years what gave them time enough to understand the Customers and create the proper value proposition to them. 

Nevertheless this is not the case. BA is not the market leader in terms of number of passengers in UK and reported negative £139m before Taxes in 2012. Wow….

Who’s the leader and the profit maker then? EasyJet.

The Company founded in 1995 by Sir Stelios Haji-Ioannou, a Cypriot businessman who leased the first 2 planes of the fleet, transported in 2013 close to 60m passengers, whereas BA hardly reached the 38m according to the official Reports of both Companies. Profit wise, EasyJet reported £317m Profit in 2012, whereas BA (as I mentioned above) reported a negative result for the year 2012. Last but not the least, while the earnings per share of IAG (the Holding Group of BA) in 2012 was -11.1 cents of EUR (approx. -9.25p), EasyJet reported a positive 62.5p for the same fiscal year.

3. Carrefour vs Mercadona

Carrefour is arguably the largest Retailer in Europe and the second one in the world, following Walmart. Although the French retailer has got all sort of stores as far as size and location is concerned, this Group is definitely known by their most successful retail format: The Hypermarket.

Carrefour arrived in Spain in 1973 with their first Hypermarket being opened near Barcelona. Since then and after a few movements of Mergings, Acquisitions and Disposals, the Group grew in number of Stores and Sales until become the market leader by the end of the XX Century.

However a big surprise was hitting the Executives of Carrefour at that time. A local Supermarket player born in Valencia on the late 70s was becoming stronger and stronger and “stealing” consumers and consequently revenues from Carrefour. To the point that in 2013 Mercadona was already the largest food retailer in Spain in revenues and number of stores. On those days the Spanish Supermarket chain had more than 21% of Market Share in Value and 15% in shop floor area. The European giant had been relegated for the second position with 8.1% Market Share in value. Even if we sum the Market Share of DIA, the Hard Discount chain that Carrefour sold in 2011, the total Market Share of Carreour + DIA together would hit 16%, 5pp less than Mercadona alone.

In all these 3 examples above we can see some sad stories of great Companies or Products that didn’t pay enough attention to the market changes and to the new needs and demands of the Consumers. It was clear than in all the 3 cases the initial value proposition was great and that’s why all of them were market or segment leaders by the time. But also in all of them we see an evident lethargy in quickly adapting their offer to the “New Consumer”.  Despite I do appreciate that it’s not easy at all to change a full Business Model with a huge investment made, what is true is that if the Products or Companies do not adapt and are able to meet the customers’ needs the risk is too high in the long run.

As Mr Sam Walton said: “There is only one boss. The customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.”

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Mismarketing

Mismarketing is probably the biggest threat in the current commercial companies as far as Marketing is concerned. And what’s the Mismarketing about? Mismarketing is the completely misunderstanding, misleading and mistakes done when CEO and Top Executives think and act in Marketing without even thinking what Marketing is about. Unfortunately the (mis)concept that many top executives of the modern Corporations have about Marketing is simply scaring. There are 3 typical mistakes done by these people regarding Marketing what leads the Organizations to practice the Mismarketing:

1. Treating Marketing as a Department and not as a Mindset.

Marketing is a mindset and not a Department. Period. Most Organizations treat Marketing as a Department or Discipline like Finance, R&D or Sales. Marketing simply cannot be treated as a Department because on one hand must be understood as a task for all the employees, mainly those who ultimately have contact with the Consumer (the market) and on the other hand Marketing needs to be born outside the Organization (in the Consumer), brought into the Organization to workout and must be returned to the Market to be bought and consumed. This is the natural cycle of Marketing and if we want to break it or change it, please don’t call Marketing to the “stuff” you’ll get instead.

2. To forget the most important bit.

The name of Marketing has its origin in the word “market” which means basically the group of customers willing or needing to buy a certain product or service (well, this is my definition but I reckon is as good as any other). If “Market” means “Customers” and “Customers” are “People”, why Corporations insist in treating Marketing as a Department that should be generating tools to sell more their products or services “wisely” developed by R&D Departments? If everything starts on the consumers’ stated or unstated needs, why many Companies tend to forget this bit and jump straight on the last part of Marketing? Just doesn’t work.

3. Thinking in Marketing as a Cost Centre.

A famous quote of Henry Ford is “A man who stops advertising to save money is like a man who stops a clock to save time”. And he was obviously right. Of course that the word Advertising here is probably too strong as there are millions of Companies (mainly SME) that cannot invest loads of money in the “Traditional” forms of Advertising. But if we replace the word Advertising by Marketing, then this Henry Ford’s quote becomes Universal and totally up to date. Many CEO and Top Managers are willing to “spend” (wrong word) money in Marketing as long as the P&L is healthy. As soon as the Sales start dropping, the first line where the red pen is used is on the Marketing one. And you know what? In the beginning it works because Marketing is a long term concept and the effects of the money invested or withdrawn on it take time to show its real effects. But in the long run, in 90%+ of the cases, the result will be the same: the product or service of this Company will slowly become a commodity and therefore competing on price only.

All the above 3 mistakes are really common these days and are leading the traditional Corporations to grounds where they wouldn’t like to be.

Please stop Mismarketing!!!!!

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